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On 30 April 2019, Casey’s General Stores, Inc. (NASDAQ:CASY) announced its earnings update. Overall, analyst consensus outlook appear cautiously subdued, with earnings expected to grow by 4.8% in the upcoming year against the higher past 5-year average growth rate of 13%. Presently, with latest-twelve-month earnings at US$204m, we should see this growing to US$214m by 2020. Below is a brief commentary on the longer term outlook the market has for Casey’s General Stores. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
What can we expect from Casey’s General Stores in the longer term?
Over the next three years, it seems the consensus view of the 10 analysts covering CASY is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of CASY’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of US$204m and the final forecast of US$239m by 2022, the annual rate of growth for CASY’s earnings is 6.1%. EPS reaches $6.63 in the final year of forecast compared to the current $5.55 EPS today. However, the expansion of the current 2.2% margin is not expected to be sustained, as it begins to contract to 2.1% by the end of 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Casey’s General Stores, I’ve put together three key factors you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Casey’s General Stores worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Casey’s General Stores is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Casey’s General Stores? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.